Entergy 2009 Annual Report Download - page 27

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Entergy Corporation and Subsidiaries
Management's Financial Discussion and Analysis
23
Operating Lease Obligations and Guarantees of Unconsolidated Obligations
Entergy has a minimal amount of operating lease obligations and guarantees in support of unconsolidated
obligations. Entergy's guarantees in support of unconsolidated obligations are not likely to have a material effect on
Entergy's financial condition or results of operations. Following are Entergy's payment obligations as of December
31, 2009 on non-cancelable operating leases with a term over one year:
2010 2011 2012 2013-2014 after 2014
(In Millions)
Operating lease payments $95 $79 $66 $117 $173
The operating leases are discussed in Note 10 to the financial statements.
Summary of Contractual Obligations of Consolidated Entities
Contractual Obligations 2010 2011-2012 2013-2014 after 2014 Total
(In Millions)
Long-term debt (1) $1,227 $4,165 $1,631 $9,930 $16,953
Capital lease payments (2) $212 $322 $4 $28 $566
Operating leases (2) $95 $145 $117 $173 $530
Purchase obligations (3) $1,649 $2,793 $1,689 $5,692 $11,823
(1) Includes estimated interest payments. Long-term debt is discussed in Note 5 to the financial statements.
(2) Capital lease
payments include nuclear fuel leases. Lease obligations are discussed in Note 10 to the financial
statements.
(3)
Purchase obligations represent the minimum purchase obligation or cancellation charge for contractual
obligations to purchase goods or services. Almost all of the total are fuel and purchased power obligations.
In addition to the contractual obligations, Entergy expects to make payments of approximately $61 million
for the years 2010-2012 primarily related to Hurricane Katrina restoration work, including approximately $55
million of continued gas rebuild work at Entergy New Orleans. Also, Entergy currently expects to contribute
approximately $270 million to its pension plans and approximately $76.4 million to other postretirement plans in
2010; although the required pension contributions will not be known with more certainty until the January 1, 2010
valuations are completed by April 1, 2010. Also, guidance pursuant to the Pension Protection Act of 2006 rules,
effective for the 2008 plan year and beyond, continues to evolve, be interpreted through technical corrections bills,
and discussed within the industry and congressional lawmakers. Any changes to the Pension Protection Act as a
result of these discussions and efforts may affect the level of Entergy's pension contributions in the future.
Also in addition to the contractual obligations, Entergy has $328 million of unrecognized tax benefits and
interest net of unused tax attributes for which the timing of payments beyond 12 months cannot be reasonably
estimated due to uncertainties in the timing of effective settlement of tax positions. See Note 3 to the financial
statements for additional information regarding unrecognized tax benefits.
Capital Funds Agreement
Pursuant to an agreement with certain creditors, Entergy Corporation has agreed to supply System Energy
with sufficient capital to:
maintain System Energy's equity capital at a minimum of 35% of its total capitalization (excluding short-
term debt);
permit the continued commercial operation of Grand Gulf;
25